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Should Value Investors Buy Fidelity National Information Services (FIS) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Fidelity National Information Services (FIS - Free Report) . FIS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.64, while its industry has an average P/E of 19.75. Over the last 12 months, FIS's Forward P/E has been as high as 16.44 and as low as 10.64, with a median of 13.47.

FIS is also sporting a PEG ratio of 1.43. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. FIS's industry has an average PEG of 1.71 right now. Within the past year, FIS's PEG has been as high as 1.47 and as low as 0.53, with a median of 0.76.

These are just a handful of the figures considered in Fidelity National Information Services's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FIS is an impressive value stock right now.


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